Cathie Wood, CEO and founder of Ark Invest, takes big bets on companies that she sees having high growth potential, such as Tesla (TSLA), Coinbase (COIN), Zoom Video Communications (ZM), DraftKings (DKNG) and Roku (ROKU).
Coinbase, Tesla stock, Coinbase, UiPath (PATH), Roku and Zoom Video are Ark Invest’s top holdings as of Oct. 27. Those five Cathie Wood stocks account for 23% of all Ark’s holdings. Square-parent Block (SQ), Exact Sciences (EXAS), DKNG stock, Roblox (RBLX) and Twilio (TWLO) round out the top 10. All told, Ark has nearly 40% of its funds in these 10 stocks.
DraftKings is the top 2023 performer among big Cathie Wood stocks, up 133.9% as of Oct. 27. COIN stock is up 100%. Tesla stock has jumped 68.3%, despite big recent losses in the week. Block is the biggest laggard, down 30%.
But all 10 top Cathie Wood stocks are off more than 20% from their 2023 highs, with SQ stock plunging 55.5%. Much of that is a reflection of the market’s overall downtrend since late July.
Year to date, the Dow Jones has fallen 2.2%, the S&P 500 index has climbed 7.2% and the Nasdaq composite has rallied 20.8%.
Cathie Wood Stocks: Top Holdings’ 2023 Performance
|Company||Ticker||2023 change||Vs. all-time high||Vs. 2023 high|
DKNG stock traded near 52-week lows right at the end of 2022, but then took off, nearly doubling through late February. After consolidating for a couple months, the online sports betting giant broke out again, running up all the way to 34.49 on Aug. 4. Shares sold off hard for the next two weeks but since then has consolidated in a volatile fashion. Shares fell back below their 50-day line last week. DraftKings stock is 22.8% below its 2023 high, but the smallest retreat of any of these Cathie Wood stocks.
Coinbase shot up in January, then retreated in a choppy fashion until early June, when shares took off and more than doubled again in little over a month to a 114.43 on July 14. Since then shares have given up more than a third of their value. Much of Coinbase stock’s ups and down have reflected hopes or setbacks for a spot Bitcoin ETF.
Shares spiked early last week on renewed spot ETF hopes, hitting 89.40 intraday on Oct. 24, but reversed lower in a big outside week, down 5.2%.
After a huge run to start the year, TSLA stock consolidated for a few months, but ran up rapidly from late April to a 2023 peak of 299.29 on July 19. Since then, shares have sold off, largely on the Q2 and Q3 earnings reports and concerns about the Cybertruck and future growth drivers. TSLA stock has tumbled below its 200-day line to its lowest level since early June.
Tesla is down 50% from all-time highs. But that’s better than any of Cathie Wood’s other top-10 stocks.
Cathie Wood Pares Winners
Ark Invest has a $2,000 price target on Tesla stock in 2027, but Cathie Wood has slashed her big holdings in recent weeks. Wood has a tendency to sell stocks after a strong gain. Plus, TSLA stock had been exceeding 10% of the total value of ARK Innovation ETF (ARKK). With Ark’s recent share sales and Tesla stock’s big recent tumble, that’s no longer the case.
Tesla Profitable, Many Cathie Wood Stocks Aren’t
Cathie Wood bets big on companies on cutting-edge fields, from EVs to artificial intelligence, automation, telemedicine and gene editing. But that doesn’t necessarily mean these particular companies and stocks will lead the way, even on a Wood-style time horizon.
Tesla is highly profitable, though EPS is falling in 2023, with earnings down 37% in Q3 vs. a year erlier. UiPath, Twilio, Zoom and Block are profitable, with DKNG stock turning so. Coinbase, Exact Sciences, Roku and Roblox are all losing money.
Ark Invest ETFs In 2023
Cathie Wood’s flagship ARK Innovation ETF dived 67% in 2022. After surging for much of 2023, ARKK has whittled its year-to-date gain down to 9.2%. ARKK is 78.6% below its February 2021 peak.
The Ark Genomic Revolution ETF (ARKG) has reversed from strong 2023 gains to fall 21.2% to it worst levels since late 2018. It’s 80.7% from its all-time high.
Ark Fintech Innovation ETF (ARKF) has climbed 21.9% this year after setting record lows in 2022. But that’s well off its 2023 high, and 73% off its record levels.
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